Second quarter 2010: Results rise further on higher aluminium prices and solid sales

by Hydro Aluminium AS 27 Jul 13:13

(July 27, 2010)
Hydro had underlying earnings before financial items and tax of NOK 1,110 million in the second quarter, rising from NOK 688 million in the first quarter. Higher realized aluminium prices, continued improvements in alumina operations and higher downstream sales lifted underlying results for the quarter.

HYDRO CEO: Svein Richard Brandtzæg
NOK 1,110 million in second quarter underlying EBIT
Solid demand in seasonally strong quarter
Upstream improves on higher aluminium prices and alumina performance
Downstream rises further with strong sales, firm margins and improved productivity
Energy falls on significantly lower power production
Qatalum ramp-up on schedule for full output in Q4, 48 percent of cells in operation end-Q2
Takeover of Vale’s aluminium business on track for Q4 closing
NOK 10 billion rights offering successfully completed
2010 outlook for growth in Hydro’s main markets unchanged at 12 percent
“The solid results are attributable to higher sales volumes, combined with firm margins and tight cost control in a seasonally strong quarter. This quarter confirms Hydro as a strong market performer,” Hydro’s President and Chief Executive Officer Svein Richard Brandtzæg said.

“Full output at Qatalum and closing of the takeover of Vale’s aluminium business are expected in the fourth quarter. Combined, these moves will strengthen Hydro in all parts of the value chain and make us an even more robust player in an industry poised for growth,” said Brandtzæg.